Receivership order establishes clear path for sale of business to Kore Outdoor
MONTREAL, Oct. 23, 2020 /PRNewswire/ -- G.I. Sportz Inc., a global leader in the manufacturing of high-quality paintball products, today announced details of its restructuring plan designed to strengthen the company and ensure uninterrupted service to its customers worldwide.
On October 15, 2020 G.I. Sportz Inc. and its US affiliates (the "Companies"), were placed into receivership. The Receivership Order appoints KSV Restructuring Inc. as receiver (the "Receiver") of the Companies' property, assets and undertaking.
The main purpose of the receivership proceedings is to complete a sale of the business (the "Transaction") to Kore Outdoor Inc., an entity that will be owned by the Companies' majority shareholder, Fulcrum Capital Partners ("Fulcrum"), and shareholders that include members of the management team and Richmond Italia. The Companies' existing management team will continue to guide the Companies' operations during the receivership proceedings and will lead the business upon completion of the Transaction. Motions to approve the Transaction are scheduled and, subject to approvals, the Transaction is expected to close on or before November 30, 2020.
Fulcrum's support of the process and its willingness to invest in the business reflects its strong belief in the Companies' long-term prospects. The Transaction provides great opportunities for the business that will allow it to focus on growth, be better capitalized and continue to operate on a going-concern basis in the long term.
Greg Collings, Chairman of G.I. Sportz and a partner of Fulcrum, stated, "we are committed to continuing to serve our customers and the paintball community around the world, and this transaction is an important step to enable us to maintain our leadership. Our team has made great strides in recent months to restructure the business during the unprecedented challenges resulting from the Covid-19 pandemic. We look forward to working closely with the exceptional management team to grow the business."
Billy Ceranski, President of G.I. Sportz, added, "this restructuring puts us in the ideal position not only to serve our customers at the highest level, but also to strengthen our company in this ever-changing environment. We will continue to support our brands and the market for years to come. The Companies are continuing to operate in the normal course during the receivership proceedings. There will be no interruptions to G.I. Sportz's ability to deliver goods and services to the paintball market."
About G.I. Sportz Inc.
The Companies manufacture and distribute paintballs, markers and related accessories. The Companies serve a global customer base of paintball fields and stores. G.I. Sportz Inc. is recognized as a global leader in the manufacturing of high-quality paintball products which are marketed to individuals at all levels of play, from entry level to competitive play market segments.
SOURCE G.I. Sportz Inc.